The National Bank of the Republic of Macedonia (NBRM) is the official institution responsible for the compilation, processing and dissemination of data on monetary, balance of payments, external debt,international investment position and foreign exchange rates of domestic currency statistics, in accordance with international standards. Also, NBRM is responsible for the conduct of the foreign exchange rate policy, in order to accomplish its main objectives.

The legislation establishing this responsibility for the National Bank consists of the Law on the National Bank of the Republic of Macedonia (Official Gazette of RM No.158/10, 123/12 ,43/14 , 158/10, 123/12, 43/14, 153/15 and 6/16 ), and also in several related other laws, such as: the Banking Law (Official Gazette no67/07,90/09, 67/10, 26/13 , 15/15, 153/15 and 190/16 ), the Foreign Exchange Law(34/01; 49/01; 103/01; 54/02; 51/03, 81/08, 24/11,135/11, 188/13 , 97/15 , 153/2015and 23/16 ) ,the Law on State Statistics (Official Gazette no. 54/1997,21/2007,51/2011,104/2013 42/2014, 192/2015 and 27/2016), the Law on Personal Data Protection (Official Gazette no.7/2005, 103/2008, 124/2010, 135/2011,43/2014, 153/2015 and 99/2016) and the Law on Free Access to the Public Information (Official Gazette no.13/2006, 86/2008, 6/2010, 42/2014 and 148/15 ), as well as the Program for statistical research 2013-2017 .

Terms and conditions under which data are compiled and disseminated are defined in more detailed National Bank's Decisions and Manuals.

The Law on the National Bank of the Republic of Macedonia is available in English on the website of the National Bank of the Republic of Macedonia.

Data sharing arrangements that are made with other relevant institutions, as well as among departments within the NBRM is adequate, works effectively, with speedy transfer of data on a various basis, in particular between the National bank (NBRM), the Ministry of Finance (MF) and the State statistical Office (SSO). The five -years Program for Statistical Research,adopted by the Government of the Republic of Macedonia, covers all types of statistical research conducted by the authorized bearers of statistical activity, stated in Article 6 of Law on State Statistics. The current Program has been prepared in 2012, for the period 2013-2017 and revised in 2014, 2015 and 2016.

Protocols agreed between the NBRM and other agencies (SSO, Custom office, Central Depository, Central Registry and Securities and Exchange commission), covers data-sharing arrangements, periodicity and timeliness of data transmission. The NBRM and these agencies also attend inter agency meetings, to discuss their cooperation.

When the need arises, the NBRM Council forms ad hoc working bodies.The NBRM Council is the governing body of the NBRM, consisting of the governor,three vice governors and five external non-executive council members. The working groups usually consist of concerned NBRM departments and other relevant agencies to address data reporting coordination issues and to ensure the maximum utilization of the existing reporting systems.

Individual reporter's data are kept confidential and used for statistical purposes, in accordance with regulations.

The Law on the National Bank of the Republic of Macedonia (Article 37, 70 and 74) provides for confidentiality of data, and Article 123 provides for a penalty of 4.000 - 8.000 Euros for an employee who discloses confidential data to unauthorized persons. An exception of this, a member of the Council or employee of the Central Bank may disclose information that are not publicly available in accordance with procedures established by the Central Bank, in strictly defined cases that are specified in Article 74 point 2.

This obligation is also reinforced in the Code of Conduct of the Employees of the NBRM, which is available on the NBRM internal website and is distributed to new staff.

The NBRM takes several measures to prevent disclosure of individual data, including (i) password protection to allow access to authorized staff only; (ii) restricted access to the database containing individual data to authorized staff; and (iii) restricted access to parts of the NBRM building where questionnaires are stored.

Data being collected may only be used for statistical purposes and are subject to confidentiality provisions. The Act on State Statistics (Article 35, Section VIII) states that individual data collected for statistical purposes shall be utilized only for statistical purposes.

The NBRM interprets confidentiality to mean the data should not be attributed to a particular respondent. In an economy such as Macedonia, some items in the particular statistics may contain data from only one or two entities in a particular time period. Stopping the publication of such data would imply that some items could not be published, particularly for detailed components such as splits by type of economic activity. This situation and the understanding of respondents have led to the adoption of the current interpretation of confidentiality.

However, in 2015, the Central Bank has adopted Guidelines for the implementation of the penalty policy in terms of surveillance and supervision in the field of statistics.

The Law on State Statistics (Article 35, Section VIII) and the NBRM Law (Articles 37, 70 and 74) state that individual data collected for statistical purposes shall be utilized only for statistical purposes.

Under the Law on State Statistics, data collection agencies are required to cite the legal authority for the collection, the body responsible for collecting the data, the provisions for the protection of the confidentiality of data, and the respondent's obligation to supply data. From examination of forms, it is clear that these provisions are implemented.

The NBRM's database was designed in such a way that all data reported to the NBRM for various purposes can be accessed by all relevant departments with a view to ensuring the maximum utilization of the available data by various NBRM departments.

The NBRM Law (Articles 36) and Banking Law (Article 101) state that all banks and savings houses must provide the NBRM with reports on their financial statements and other financial data in the format and by the date prescribed by NBRM. Articles 120 and 121 of the Law on the NBRM provides for a penalty of 5.000 Euros for a legal entities and of 500-750 Euros for individuals, for no reporting, according Article 36.

The Foreign Exchange Law ( Article 56, points 6 and 7) establishes the responsibility of entities to supply data as part of the foreign exchange regulation. A fine of 6000 Euros is prescribed for no reporting.

In 2008 in accordance with the ROSC mission recommendations the NBRM has introduced amendments to the Law on Infractions, thus introducing mandatory penalties for reporters failing to report in time or report at all.

Terms and conditions under which data are compiled are definedin more detail in the National Bank's Decisions and Manuals. The NBRM provides reporters with written instructions for completing their reports.

For surveys, the data suppliers are enterprises and natural persons of a wide range of types of activities and sizes, and the response rates evidence that compliance needs to be improved. Rather than rely on prosecution, the NBRM has developed good statistical practices to encourage cooperation from data suppliers for surveys. These practices include circulating draft forms to data suppliers in advance for comments, making frequent contact with data suppliers, revising forms to be more convenient for users, holding seminars for data suppliers, supplying and updating an explanatory manual to support the questionnaires, inviting data suppliers to visit the NBRM to guide them through completion of the forms, and being available to provide advice by telephone on a continuing basis. However, in 2015, the Central Bank has adopted Guidelines for the implementation of the penalty policy in terms of surveillance and supervision in the field of statistics.

In order to increase the efficiency and improve of working processes in Statistics Department also work 6 advisors.

The computing facilities are appropriate. All staff has computer terminals. An information technology unit provides support on technical matters. As from 2012, there is one IT person that works within Statistics department. Data are backed up, including off-site copies.

Physical facilities are adequate. Because of the small size of the country, transport is not a major issue.

There are well-established processes for budgeting for the coming year's work program. Proposals for departments' needs for ongoing programs and developmental work are submitted via the Financial, Accounting and Control Department to the NBRM Council for approval .

The Statistics Department promotes the efficient use of existing resources through (i) annual performance review for staff, (ii) staff training in relevant areas to enhance their technical knowledge and skills, (iii) periodic review of work processes when needs arise and adjustments to improve work processes.

Promotion and staff selection are based on merit. Staff receives training on the job and at courses.

The Law on State Statistics establishes the Statistical Council of the Republic of Macedonia as an expert advisory committee that covers all official statistics. It gives general advice on statistics and proposes the five-year Program for Statistical Research (2013-2017).

NBRM staff tries to meet user's needs by continuously maintaining the quality of statistics up to the required level. This is done mainly through following the European Union and IMF standards and by monitoring new economic developments from media reports and economic research and ensuring that there is adequate data coverage.

Since end 2010 the Department has posted a special mailbox ( contact.statistika@nbrm.mk ) on the NBRM's web site, enabling all users having inquiries about the manner of reporting to address the staff within the Department directly.

Internally, consultation with the management and other relevant departments of the NBRM is in place to periodically address issues of concern related to data usefulness for external regime policy purposes.

Externally, an established process of consultation takes place periodically with other government agencies, the media, and other data users.

Management at all levels of the NBRM focuses on quality. Internal seminars and on-the-job training in the Statistics Department also focus on quality improvement. Concern for quality is evident in the changes and extensions of data coverage made in recent years.

The NBRM has used technical assistance and adoption of international standards as a framework for quality improvement. It has a very good record of implementing the recommendations of previous IMF technical assistance missions in the area of statistics ( since 1995 ).

The NBRM also closely follows developments in statistics in the European Union and in other countries in the region. For that purpose, several bilateral visits have been realized to the countries in the region; in particular such a visit was organized in Slovenia in 2007 and 2014, in the Czech Republic in 2010, the Netherlands and Bulgaria in 2010, 2011 and 2014, Italy in 2013, Croatia in 2015.

During the past year, some of the planned activities regarding the approved applications of the National bank for technical assistance through the TAIEX instrument have been realized, such as:

- NBRM is included in regional project of IMF on GFS and EDP, financed by SECO, along with SSO and MoF as a beneficiary of the project from the Republic of Macedonia

- In 2016 an TAIEX Expert mission on External statistics, in cooperation with the Bundesbank and an Expert mission on Securities by securities data collection, in cooperation with the Bank of Italy, were held;

- In 2015 Study visit on Financial Accounts of government – transactions and balance sheets, held in Zagreb, in cooperation with National Bank of Croatia;

- In 2015 TA mission with the IMF has been realized in the area of Monetary and Financial Statistics.

The NBRM Statute, publicly available, contains information on the NBRM's commitment transparency in its operations and information. Articles 3 and 4 of the Code of Conduct of the Employees of the National Bank of the Republic of Macedonia specify professional competence and efficiency, respectively, as important objectives for NBRM staff.

To monitor statistical processes, information is generated, for example, data on processing time, response rates, and adjustments to data. There is frequent contact between the compilation staff and internal experts, as well as with experts from international agencies or from other countries.

The data compilers also monitor new regulations and developments. Detailed contact information is provided for sending comments or requests to the NBRM. Statistics Department is making continuous improvement of communication with users of statistics and reporters based on the analysis of results of public survey for users and reporters conducted during 2013.

The Statistical Research Program 2013-2017 is the five-year program for all official statistics. The program is developed by the Statistical Council and statistical compilers in consultation with data users. It takes into account user needs, data priorities, and trade-offs. Increased attention has been given to improving timeliness and quality.

The NBRM has extensive informal contact with users, which assists in identifying priorities for future improvement.

The Statistical Research Program 2013-20117 is the five-year program for all official statistics. The program is developed by the Statistical Council and statistical compilers in consultation with data users. It takes into account user needs, data priorities, and trade-offs. Increased attention has been given to improving timeliness and quality.

The NBRM has extensive informal contact with users, which assists in identifying priorities for future improvement.

The independence of the NBRM is established in the NBRM Law (Articles 5) and the NBRM Statute (Articles 1–5), which grant the NBRM the powers to carry out the duties under its own responsibility

The NBRM is governed by the NBRM Council, consisting of the governor, three vice governors and five external non-executive council members. The Governor of the NBRM is appointed for a seven-year term, proposed by the President, and confirmed by the Parliament. Other council members are also independent. The governor is responsible to Parliament and can only be removed by Parliament. The governor and council members are not permitted to engage in the activities of political parties.

The Code of Conduct of the Employees of the National Bank of the Republic of Macedonia includes the "Principle of Integrity," "Principle of Objectivity" and "Principle of Independence."

There is no political interference in the production of statistics. Professional competence plays a key role in recruitment and promotion policies. Data and reports are carefully reviewed for maintenance of professional standards.

The NBRM Human resources Department establishes minimum requirements for potential recruits including education background. Professional competence plays a key role in recruitment and promotion policies. Recruitment and promotion are based on relevant aptitude and/or expertise. Minimum requirements for potential recruits include education background and interview with the candidates.

NBRM staff participates in regional and international conferences and training. In addition, the NBRM encourages staff to pursue advanced studies in work-related fields by providing funds for part-time college courses. The NBRM also encourages research and analysis by publishing working papers on the NBRM's Internet web site ( http://www.nbrm.mk/default-en.asp?ItemID=7B2EE5F21FF7D2448DCEEE125A046C60 ).

The selection of sources and statistical techniques for the compilation ofmonetary, external or other statistics data is in accordance with different manuals and written methodologies by IMF, EUROSTAT, ECB, OECD, UNCTAD and other international statistical and financial standards. The data sources are similar to those used in other countries in the region.

Staff is encouraged to present their reasoning for the choice of methodologies in documents that are made public. Decisions about dissemination are informed solely by statistical considerations.

The dissemination of data is made according to a regular schedule without any interference.

Statistics Department of NBRM is regularly publishing press releases on "Monetary developments" and "Interest rates" on a monthly basis, as well as "Other financial institutions", "Balance of Payments" and "External debt, External claims and IIP", on a quarterly basis.

If there is erroneous interpretation or misuse of the data in the media, the NBRM Governor's Office comments and provides clarification in the media and publishes statements on its website. If needed,the NBRM contacts the reporters and other interested parties to have the erroneous interpretation corrected.

The relevant laws are available in Macedonian and English on the NBRM website.

The new NBRM Law states NBRM’s policies on accessibility of statistical data and information (Article 35,36 and 37).

The NBRM Statute clearly states NBRM’s policies on (i) treatment of confidential data and (ii) transparency of its operations and information. Transparency is achieved by making laws and procedures available to the public, releasing data simultaneously to interested parties, and identifying statistics as NBRM products. Notice of major methodological changes has been given in advance.

The NBRM’s publications always indicate the address of the NBRM’s internet website, where more information about the NBRM, as well as other macroeconomic statistics, and related working papers are disseminated.

Questionnaires for data suppliers are required to cite the legal authority, confidentiality, and obligation, as well as a contact address and phone number. Manuals, report forms, and circulars giving detailed instructions and background.

Data are also posted on the website, alongside the data series - in Macedonian and English, as well as a part of the Quarterly Report and within its Statistical Appendix (a regular publication of the NBRM).

Information about statistical collections on the NBRM website and the information on the Fund’sDissemination Standards Bulletin Board website also enhance transparency by provision of information to the public about statistical collection, processing, and dissemination.

Manuals, report forms, and circulars giving detailed instructions and background on the data collection systems are available on the NBRM website in Macedonian.

The paper and electronic publication of all statistical data are clearly identified as NBRM products, with their name and logo. The data have been specifically attributed to the NBRM Statistics Department and/ or other NBRM's departments.

When data produced by other agencies are published, the source is indicated in the footnotes. The NBRM requests attribution when its statistics are used for reproduction or re-dissemination.

The quarterly release and the Quarterly Report- Statistical Appendix contain only data and metadata. Tables, charts, and commentary on statistics are included in the Annual Report of the NBRM

The NBRM requests attribution for various data when it discusses for them with users. NBRM is cited as a data source in publications by other agencies.

Advance notice is given when major changes are introduced. Usually major changes in source data are announced in the Official Gazette of the Republic of Macedonia (The Gazette).

Since there have been some changes introduced in the compilation system of same statistics surveys within the last couple of years, the NBRM has taken into account the recommendations of the ROSC report and has published new data sets based on the new methodology, as well as the accompanying methodological notes.

The Code of Conduct for Employees of the NBRM (Code of Conduct) provides comprehensive ethical guidelines for the staff of the NBRM. These guidelines, well known to NBRM staff, establish the main principles and rules for staff integrity, objectivity, professional competence,efficiency, professional independence, maintaining confidentiality of data, and avoiding conflict of interest, outside jobs, employment after leaving the NBRM,receipt of gifts etc. In particular, NBRM staff has access to the Code of Conduct on the NBRM intranet website, it is distributed to new staff and staff is reminded periodically to review these guidelines when amendments are made tothe Code of Conduct.

This FX rate of the domestic currency (MKD- Macedonian denar ) against the Euro is determined at the end of each business day as the average of the daily bid-ask quotes for euros among the market makers on the interbank foreign exchange market. The FX rate of the domestic currency against other currencies is determined calculated using daily reference rates of Euro against other currencies, published by the European Central Bank.

Data for the exchange rate on certain day, as confirmation for court decisions or for other purposes, is available to interested users upon their request for a fee (published on the web site of the NBRM).

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